Gold Is Independent Money and Why Fiat System is Corrupt


Short video which explains why countries went off the gold standard and obvious problem of inflation that comes from that.


European Banks in a Bad Shape

Comments Off on European Banks in a Bad Shape

Gonzala Lira makes the point below very well, that no bank wants to be ssen taking a loan from its Central Bank. The fact that 523 banks did so show how fragile european banks are.


The ECB lent out the €489 billion against any and all collateral the European banks would put up. In exchange for this collateral—no matter how damaged—the banks got 1% loans, which is not merely free money but essentially subsidized money: Eurozone inflation is around 3%, and except for German and Dutch debt, all sovereign bonds are yielding more than 3%. Thus a 1%-interest loan from the ECB is like being paid to take out a loan—and who wouldn’t want that deal?

Ordinarily, no bank wants to be seen to be taking money from the central bank, because it makes the bank look weak, and therefore hurts its reputation on the markets. But in this case, 523 banks—count ‘em, 523—took the ECB money: Which proves both how fragile the situation really is, and how generalized that fragility really is. European banks no longer care what it looks like, as survival has trumped appearances.

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